to Prudential’s 2014 "Hispanic American Financial Experience"
study, the Hispanic community is moderately confident in its future outlook for
household finances, the local and national economy, and the attention that is
being paid to their needs by the financial industry and government.
addition, the Hispanic community places a high priority on funding near-term
goals, such as reducing debt, purchasing a home or creating an emergency
savings account. Many in the community are also supporting multigenerational
families. Although these factors are admirable, they sometimes make it
difficult for them to prepare for their long-term financial security.
findings of the Prudential study include:
- Hispanic Americans have a higher financial confidence (46 out of
100) than the General Population in the United States.
- Unlike other groups, Hispanics' Financial Confidence Index scores
are highly consistent across demographics.
- Hispanics identify themselves more as savers than as investors,
with 37 percent of the survey participants indicating that they are more of a
"saver" than an "investor." However, nearly as many (36
percent) say they are "neither a saver nor an investor."
- Survey findings reflect a cultural aversion to debt, as evidenced
by the fact that 62 percent of the survey participants said that there is no
such thing as "good debt," and 49 percent indicated a preference for
paying cash for an item or not buying it all.
- Household expenses, health-care costs, savings and debt level—all
near-term concerns—are ranked as higher concerns than retirement.
- Family finances are often multigenerational and global, as
evidenced by the fact that one in six families support their parents and 42
percent of non-U.S. born participants send money to relatives in their
- The anticipated retirement age indicated by non-retired Hispanics
is 66, which is three years later than that of the general population.
- 12 percent indicated they intend to retire at age 75 or later,
compared to only 4 percent of the general population.
- Once retired, 73 percent plan to continue working at least part
- More than half of the Hispanics surveyed—regardless of their income
or country of birth—indicated a "poor" or "very poor"
understanding of U.S. workplace-based retirement plans and Social Security.
- When compared to the general population, those surveyed cited less
access (72 percent versus 83 percent) and lower contributions (71 percent
versus 85 percent) to workplace-based retirement plans.
- 17 percent of employed Hispanics are not sure if their employers
provide matching retirement contributions, compared to 8 percent of the general
research, The Hispanic American Financial
Experience, was conducted from October 28–November 18, 2013, by GfK Custom
Research, Inc. in both English and Spanish. This survey polled 1,023 Americans
who self-identify as "Hispanic," and survey questions encompassed a
broad range of financial topics.
participants met the following criteria:
- Age 25–70
- Household income of $25,000 or more
- Some involvement in household financial decisions
survey was designed to broadly represent characteristics of the 9.6 million
Hispanic households with annual incomes of $25,000 or more. It is important to
note, however, that the Hispanic community is composed of a number of different
groups with unique cultural experiences, traditions and history.
"Hispanic" is used consistently with the official U.S. government
definition as included in the 2010 U.S. Census to refer to "a person of
Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race."
Ayo Mseka is Editor-In-Chief
of NAIFA’s Advisor Today magazine. Contact her at email@example.com.